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Thread: UIF Daily income

  1. #1
    Junior Member
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    Jul 2010
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    UIF Daily income

    Hi all:

    I wonder if anyone can be of assistance?
    I'm trying to determine how much one of our employees will receive from the UIF when she goes on maternity leave. If I look at the current legislation it still refers to a maximum benefit transition income level of R8,099 per month yet we currently pay UIF up to a maximum level of R14,872.
    Does the benefit income transition level and the maximum income threshold level have any correlation or are the benefits still calculated on R8,099 per month whereas everyone is contributing up to a rate of R14,872.

    I need to understand if the benefit transition levels have increased over the last couple of years in order to determine what her daily income will be.

    Your assistance in making me understand this will be highly appreciated.

    Thank you.

  2. #2
    Silver Member Christel's Avatar
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    Feb 2012
    Port Elizabeth
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    This is a grey area and I think many people have tried to get this calculation correct in the past. We also have someone going on maternity leave and this is what I found when reading up on the subject:
    DoL look at a 4 year cycle immediately preceding the date ofapplication. (nice to remember that claiming of maternity benefits willnot reduce your days… it’s basically an “extra” benefit).

    Firstly, determine the daily rate ofremuneration. As per 13.1 below.

    Then calculate your days of benefits (maximumdays accrued can be 238) You can only receive payment for up to 17.32weeks/basically 4 months.

    Then, per my understanding you would take the daily rate x60% (maternity benefit) x days of benefits = what they will pay you. Remember all benefits paid is net, and not subject to statutory deductions.

    Calculation of benefits

    13. (1) Subject to subsection (2), forpurposes of calculating the benefits payable to a contributor, the daily rate of remunerationof a contributor, subject to the prescribed maximum, must be determined—

    (a) if paidmonthly, by multiplying the monthly remuneration by 12 and dividing it by 365;

    (b) if paid weekly, by multiplying theweekly remuneration by 52 and dividing it by 365.

    (2) If the contributor’sremuneration fluctuates significantly from period to period, the calculationmust be based on the average remuneration of that contributor over the previoussix months.

    (3) Subject to subsection(5), a contributor’s entitlement to benefits in terms of this Chapter accruesat a rate of one day’s benefit for every completed six days of employment as acontributor subject to a maximum accrual of 238 days benefit in the four yearperiod immediately preceding the date of application for benefits in terms ofthis Chapter, less any days of benefit received by the contributor during thisperiod.

    (4) For purposes ofdetermining completed days of employment as contemplated in subsection (3), theperiod includes—

    (a) the day that a contributorcommenced employment and runs up to and including the day on which employmentwas terminated; and

    (b) any period in respect of which— (i)an employee was paid remuneration in lieu of notice;

    (ii) a merchant seamanreceived remuneration in terms of section 140 of the Merchant Shipping Act, 1951(Act No. 57 of 1951).

    (5) The days of benefits that acontributor is entitled to in terms of subsection (3) may not be reduced by thepayment of maternity benefits in terms of Part D of this Chapter. Method ofcalculating days of benefits that a contributor is entitled to:

    Step 1 - Determine totalnumber of days that an employee was employed as a contributor in the four-yearperiod immediately preceding the date of application for benefits in terms ofthis Chapter.

    Step 2 - Divide totalnumber of days by 52 multiplied by seven and disregard any fraction of theresultant figure.

    Step 3 - Subtract from thisamount any days benefits (excluding maternity benefits) received in thefour-year period immediately preceding the date of application for benefits interms of this Chapter.

    Step 4 - The resultantfigure determines the days of benefits that a contributor is entitled to.

    You can also have a look atthis link… just to test your figures.

    There is an amendment bill that was discussed in Nedlac towards the end of 2013 which will up the above benefits, i.e. Maximum Maternity benefit value to be 66% or remuneration (currently 60%); Credit Days accumulate as 1 day for every 4 (currently 6) calendar days; Credit Days maximum over 4 years to increase to 365 (was 238) days.
    The President must still sign the amendment Bill into law... hopefully this will happen before the election and then hopefully they will backdate the change to 1 April 2014...

    Hope the info above helps you.

    always fear when Christel is near....

  3. Thanks given for this post:

    Dave A (30-Mar-14)

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